NEDA endorses use of $1M clean technology fund for BRT

CEBU, Philippines -   The National Economic and Development Authority has endorsed to the World Bank the request made by the Department of Transportation and Communications to tap the Clean Technology Fund for the preparation of the Bus Rapid Transit projects here and in Metro Manila.

 The preparation will include among others the feasibility study that will need US$1 million in funding.

 World Bank requires the endorsement of NEDA and the Department of Finance in order to release the amount intended for the study.

 Prior to this, the Public Private Infrastructure Advisory Facility (PPIAF), a member of the World Bank group, has given Cebu City a US$1-million grant for the pre-feasibility study of the BRT which began in November 2009 and expected to be completed this month.

 As soon as the funding is released, City Planning and Development Coordinator Nigel Paul Villarete said they will start the feasibility study for the next eight to 12 months.

 The feasibility study shall seek to determine the exact project cost, the project design, requirements for its maintenance, management and operations among others.

 NEDA deputy director general Rolando Tungpalan said that the study should also include recommendations on the institutional arrangement and proposed loan structuring and possible cost sharing between the national government and concerned local government units.

 The proposed BRT project in Cebu City extends 13 kilometers from Barangay Bulacao to Barangay Talamban. Initially, the routes are Osmeña Boulevard-Escario Street-Ayala-Talamban and Bulacao-SM City Cebu. Route at the South Road Properties is also being considered.

 The operationalization of the BRT project is expected to reduce by 80 percent the number of public utility vehicles plying the mentioned routes.

 The pre-feasibility study determined that the cost per kilometer of the bus line will be US$4 million or a total of P2.4 billion for the 13 kilometers.

 The World Bank has already allocated US$50 million budget for the BRT here and in Manila. The amount shall be drawn against the US$350 million Clean Technology Fund.  (FREEMAN NEWS)